US President Donald Trump on Tuesday ordered what he described as a “total and complete blockade” of all sanctioned oil tankers entering and leaving Venezuela, sharply escalating Washington’s pressure campaign against President Nicolas Maduro by targeting the country’s primary source of revenue.
In a post on Truth Social, Trump accused the Venezuelan government of “the theft of our assets” and linked Caracas to terrorism, drug smuggling and human trafficking. He said the Maduro administration had been designated a “foreign terrorist organisation,” adding that the blockade would apply to all oil tankers under US sanctions moving into or out of Venezuelan ports.
It remains unclear how the administration intends to enforce the blockade, or whether it will formally task the US Coast Guard or Navy to interdict vessels at sea. The move follows last week’s seizure of a sanctioned oil tanker off Venezuela’s coast and comes amid a significant US military build-up in the region, including the deployment of thousands of troops and nearly a dozen warships, among them an aircraft carrier.
Venezuela’s government swiftly rejected Trump’s declaration, calling it a “grotesque threat” and accusing Washington of violating international law and sovereignty. Speaking later on Tuesday, Maduro said the US military posture was aimed at overthrowing his government and seizing control of the OPEC nation’s vast oil wealth, the largest proven crude reserves in the world.
Markets reacted quickly to the announcement. Oil prices rose more than 1 per cent in Asian trading on Wednesday amid fears of supply disruptions. Brent crude futures climbed 70 cents, or 1.2 per cent, to US$59.62 a barrel, while US West Texas Intermediate rose 73 cents, or 1.3 per cent, to US$56.00. US crude futures had settled at US$55.27 on Tuesday, the lowest close since February 2021, underscoring how sensitive prices remain to geopolitical shocks.
Traders said the rally reflected expectations that Venezuelan exports could fall further if the blockade is enforced, though many remain cautious until Washington clarifies its scope. Some market participants are also watching to see whether the measures would extend beyond already sanctioned vessels to include ships operated by companies that still have limited authorisation to handle Venezuelan crude.
Legal experts warned the order raises serious constitutional and international law questions. Elena Chachko, an international law scholar at UC Berkeley School of Law, said blockades have traditionally been treated as instruments of war and are subject to strict legal conditions. Trump’s assertion of a blockade, she said, represents a new test of presidential authority. “There are serious questions on both the domestic law front and international law front,” Chachko noted.
Several US lawmakers echoed those concerns. Representative Joaquin Castro, a Texas Democrat, called the blockade “unquestionably an act of war,” arguing that Congress has not authorised such action. “A war that the Congress never authorised and the American people do not want,” he wrote on X.
In practical terms, there has already been what analysts describe as an effective embargo on Venezuelan oil since last week’s tanker seizure. Loaded vessels carrying millions of barrels of crude have remained in Venezuelan waters rather than risk interception, sharply curtailing exports. The situation has been compounded by a cyberattack that disrupted administrative systems at state-run oil company PDVSA, further hampering shipments.
While many ships lifting Venezuelan oil are under US sanctions, others are not. Some tankers transporting crude from Iran and Russia alongside Venezuelan barrels remain unsanctioned, and a handful of companies — most notably US-based Chevron — still move Venezuelan oil using authorised vessels under existing licences. Whether Trump’s order would affect these arrangements remains uncertain.
For now, the global oil market is relatively well supplied, with millions of barrels stored on tankers off the coast of China awaiting discharge. But analysts warn that if Venezuelan exports remain offline for an extended period, the loss of close to one million barrels per day could tighten supply and drive prices higher.
Two US officials said that if fully implemented, the new policy could have a significant impact on Maduro’s government. David Goldwyn, a former US State Department energy diplomat, said that unless the loss of Venezuelan supply is offset by increased output from OPEC’s spare capacity, oil prices could rise by US$5 to US$8 a barrel. Inside Venezuela, he warned, the consequences could be severe. “I would expect inflation to skyrocket, and massive and immediate migration from Venezuela to neighbouring countries,” Goldwyn said.
Since Washington imposed sweeping energy sanctions on Venezuela in 2019, traders and refiners have relied on a so-called “shadow fleet” of tankers that obscure their locations or operate under flags and ownership structures linked to Iranian or Russian oil trade. Data compiled by TankerTrackers.com show that as of last week, more than 30 of roughly 80 vessels in or approaching Venezuelan waters were already under US sanctions.
Trump’s pressure campaign has also included a sharply increased military footprint and a series of strikes on vessels in the Caribbean and Pacific near Venezuela, which US officials say were aimed at enforcing sanctions. Venezuelan authorities claim those actions have killed at least 90 people. Trump has also suggested that US land strikes inside Venezuela could begin soon, further fuelling fears of a broader conflict.
In interviews with Vanity Fair, Trump’s chief of staff Susie Wiles said the president was determined to intensify pressure until Maduro capitulates. “He wants to keep on blowing boats up until Maduro cries uncle,” she said.
The Pentagon and the US Coast Guard declined to comment on operational details, referring questions to the White House. As tensions rise, markets, lawmakers and regional governments are bracing for the fallout from what could mark one of the most confrontational episodes in US–Venezuela relations in decades.
